Lithuanian economist: minimum wage increase will not bring anything good

Pranešk apie klaidą

The increase of the minimum monthly wage (MMW) in Lithuania will not resolve the problems of those who receive it and will only burden small-scale business and hinder the newcomers’ access to the labor market, said President of the Lithuanian Free Market Institute Žilvinas Šilėnas, bnn-news.com reports.

According to him, Lithuania often overestimates the size of the MMW. Silenas says there are other economic decisions that would be more efficient in improving the well-being of those in need, The Baltic Times reported.

«This decision (of the Government to push up the MMW to 850 litas (246 euros) – ELTA) would be viable if some other long-awaited changes were made too, first of all, if the Labor Code was updated. Now we have a growing wage but the Labor Code remains unchanged: old, stiff and preventing business development,» he said in an interview with ELTA.

He adds that the aim of the MMW is not about ensuring a minimum means of subsistence. The MMW is rather a state provided minimum price for job that an employer had to pay to an employee.

2 thoughts on “Lithuanian economist: minimum wage increase will not bring anything good

  1. Well, that guy is from the Free-Market Institute….its like asking George W. Bush about improving the Human Rights situation in Guantanamo. …

  2. The minimum wage should be taken away completely – it only increases the unemployment. Like in many other countries, it should be up to the employer and the employee (possible with the help of a trade union) to agree on a price for work. It is nothing the politicians should interfere with. If they want to give low-earners a higher income, they must lower their taxes instead of sabotaging the labour market.

Leave a Reply

Uses wordpress plugins developed by www.wpdevelop.com